Fears of an increase in interest rates are more intense with home loan customers.

Financial analysts see a $90 hike in monthly mortgage payments when the country's big banks increase the base interest rate. The mortgage rate hike could be 0.45 percentage points when the Reserve Bank of Australia (RBA) lifts the cash rate by 0.25 percentage points.

The rate increases would add about $90 a month to repayments on a $300,000 mortgage.

Banks have to pass on their rising costs to customers through the rate increases. The move is necessary in order to make banks capable of continuing competition for credit in global markets.

The expected rate hikes are expected to bring up the local dollar further up; however, it is considered alarming to 20,000 new home buyers in Queensland. The Urban Development Institute of Australia classified Queensland as substantially not affordable such that another interest rate hike could keep new home buyers on rentals.

REIQ managing director Dan Molloy said, “Over the past two years, Queensland's median house prices have jumped up and down depending on the types of buyers in the market at the time.”

Molloy explained the number of new home buyers was higher than usual in 2009, “so correspondingly the median went down given they bought cheaper properties. This year, there has been a return to a more even distribution of first and non-first home buyers in the market so the medians have increased accordingly.”

The change in buyers and the kinds of properties on sale “has unfortunately given the false impression there has been robust property price growth when prices are now really where they were two years ago.”